DERIVATIVE FINANCIAL LIABILITY AND CONVERTIBLE NOTE (Tables)

12 Months Ended

Dec. 31, 2017

DERIVATIVE FINANCIAL LIABILITY AND CONVERTIBLE NOTE

Schedule of key assumptions used in binomial tree model to estimate fair value

Valuation Date	November 17, 2017			December 31, 2017
Price of Neovasc common share	$	0.8727		$	0.6000
Dividend Yield		0	%		0	%
Historical volatility of Neovasc common share		122.99	%		121.70	%
Historical volatility of index		14.28	%		14.43	%
Volatility input		68.63	%		68.07	%
Risk-free rate		2.08	%		2.20	%
Credit spread		32.63	%		34.24	%

Schedule of carrying amounts of derivative financial liabilities and convertible notes

	Series A units			Series B units			Series E Warrants			Total
Fair value, November 17, 2017	$	13,139,650		$	67,810,835		$	8,519,788		$	89,470,273
Add:
Deferred loss		(7,054,787	)		(36,408,201	)		(1,669,271	)		(45,132,259	)
Amortization of deferred loss		390,379			2,067,557			41,732			2,499,668
Less:
Fair value adjustment on exercised warrants, December 27		—			(511,122	)		—			(511,122	)
Exercise of Series D Warrants (1,874,989), December 27		—			(1,108,306	)		—			(1,108,306	)
Fair value adjustment, December 31, 2017		(1,542,457	)		(2,911,914	)		(3,934,853	)		(8,389,224	)
Balance, Derivative financial liability December 31, 2017	$	4,932,785		$	28,938,849		$	2,957,396		$	36,829,030
Derivative financial liability, current										$	19,997,345
Derivative financial liability, non-current										$	16,831,685

	Convertible Notes			Total
Fair value, November 17, 2017	$	26,100,900		$	26,100,900
Add:
Deferred loss		(5,113,917	)		(5,113,917	)
Amortization of deferred loss		852,319			852,319
Less:
Fair value adjustment, December 31, 2017		(1,831,743	)		(1,831,743	)
Balance, Convertible note December 31, 2017	$	20,007,559		$	20,007,559
Convertible notes, current				$	4,261,597
Convertible notes, non-current				$	15,745,962